Tamweel expects to make Dh85om net profit this year

Dubai: Mortgage lender Tamweel said yesterday it expects to make Dh850 million in net profit this year and set its 2008 revenue target between Dh1.4 billion and Dh1.5 billion.

Wasim Saifi, Tamweel's group chief executive, said net profit for the second half is expected to grow 15 per cent over the first half, with a profit range of Dh435 million to Dh455 million.

Revenue target for the second half is between Dh725 million and Dh810 million, the company said in a guidance to investors and shareholders.

Earnings per share in 2008 are expected to be in the range of 82 fils to 84 fils compared with 45 fils in 2007. The company reported a net profit growth of 195 per cent to Dh451 million for 2007.

"The strong net profit growth projections are based on a number of factors," Saifi told Gulf News.

"These include the current boom in the real estate market in the UAE, which directly impacts our business. The company has been successful in maintaining a healthy pipeline of financing commitments of over Dh4.43 billion since the beginning of 2008."

He said the company has also diversified its funding mechanism "that enables us to secure funds at lower cost".

Islamic financing and investing assets are expected to reach between Dh10.6 billion and Dh11.1 billion compared with from Dh8.74 billion in the first half of 2008.

Financing assets increased 68 per cent in January-June period.

Total assets are expected to be between Dh13 billion and Dh13.5 billion by the end of this year.

Tamweel, which enjoys 34 per cent share in Dubai's housing finance sector, is also expanding overseas.